Board Considered and approved the audited financial results (Standalone and consolidated ) for the quarter and year ended 31032026
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Asian Hotels (West) Ltd, which owns the Hyatt Regency Mumbai hotel, received an adverse opinion from its statutory auditors J.C. Bhalla & Co. for FY 2025-26 on both standalone and consolidated financial statements. The auditors raised concerns about a Rs 39,000 lakh funding from Saraf Group (Novak Hotels Private Limited) where the classification as borrowing versus advance for asset sale is disputed, and the company failed to recognize Rs 7,845.07 lakh in interest expenses and Rs 1,598.39 lakh in reimbursement claims. Additionally, there is an unreconciled difference of Rs 242.64 lakh. The company's current liabilities exceed current assets by Rs 42,432.87 lakh, raising material doubt about going concern. The company has zero revenue from operations as the Mumbai hotel remains shut since June 2021 post-CIRP admission. The reported net loss for the year is Rs 854.87 lakh but would increase to Rs 10,298.33 lakh after adjustments for the disputed items.
The adverse auditor opinion and going concern doubt signal significant financial distress. The disputed Rs 39,000 lakh Saraf Group funding and potential sale of the Hyatt Regency Mumbai (the company's principal asset) creates substantial uncertainty. Investors should be cautious as the company's net worth would collapse from Rs 10,046.72 lakh to Rs 603.26 lakh after adjusting for audit qualifications.